Lawn care and landscaping businesses experienced solid tailwinds in Q2 2025, with demand recovering after a slow spring. At Lion Business Advisors, we’ve seen buyer interest remain strong for owner-operator businesses with recurring contracts, route density, and year-round revenue streams. As inflation pressures shift customer behavior toward maintenance over large projects, firms with loyal client bases and efficient cost structures are standing out.
Key Trends Impacting the Market
The green industry posted a 2.5% increase in new work bookings in Q2 compared to the same period in 2024, alongside a 5.8% rise in median revenue, according to Jobber’s Home Service Economic Report. Average invoice size also rose by 3.7%. These indicators suggest continued resilience, even as homeowners hold off on discretionary upgrades. For owners planning an exit in the next 1–2 years, this environment favors businesses that can demonstrate strong customer retention, proactive upselling, and recurring maintenance programs, traits that enhance both revenue predictability and valuation.
Employment and Wage Trends
Employment in landscaping services remained relatively flat in July 2025, up just 0.3% from the prior year, but the sector has expanded 23.6% over the past decade—outpacing the 13.0% growth in private employment overall. Wage growth has also been robust. Nonsupervisory employees earned an average of $25.17 per hour in July, a 6.7% increase year-over-year. Over the last ten years, landscaping wages have risen 61.6%, compared to 49.0% for all private-sector roles. Sustained wage growth signals ongoing labor competition, which will continue to pressure margins and highlight the value of operational efficiency in exit planning.
Industry Forecast
Sales for the US landscaping services industry are forecast to grow at a 5.57% compounded annual rate from 2025 to 2029, outpacing the broader economy. This projection underscores a favorable long-term outlook, particularly for businesses with diversified services, efficient routes, and stable customer demand.
M&A Market Outlook
The current M&A landscape for landscaping businesses remains active, with a healthy mix of individual owner-operators, strategic buyers, and platform investors exploring acquisitions. We’re seeing strong appetite for companies generating $1M+ in revenue with recurring maintenance contracts, reliable crews, and well-maintained equipment. Texas-based operators with dense service areas and transferable client relationships are especially attractive. While interest rates have led to more disciplined underwriting, quality deals are still commanding competitive valuations.
Looking ahead, landscaping business owners who can document retention metrics, streamline costs, and maintain steady cash flow will be best positioned for a successful sale. As Q4 approaches, now is the time to review your valuation potential and plan your next move.
Lion Business Advisors’ quarterly industry insights incorporate data and trends sourced from internal deal flow and buyer activity, Vertical IQ, and market comparables from platforms such as Axial and BVR (Business Valuation Resources).
Industry Insight Report: Landscaping Q3-2025
Lawn care and landscaping businesses experienced solid tailwinds in Q2 2025, with demand recovering after a slow spring. At Lion Business Advisors, we’ve seen buyer interest remain strong for owner-operator businesses with recurring contracts, route density, and year-round revenue streams. As inflation pressures shift customer behavior toward maintenance over large projects, firms with loyal client bases and efficient cost structures are standing out.
Key Trends Impacting the Market
The green industry posted a 2.5% increase in new work bookings in Q2 compared to the same period in 2024, alongside a 5.8% rise in median revenue, according to Jobber’s Home Service Economic Report. Average invoice size also rose by 3.7%. These indicators suggest continued resilience, even as homeowners hold off on discretionary upgrades. For owners planning an exit in the next 1–2 years, this environment favors businesses that can demonstrate strong customer retention, proactive upselling, and recurring maintenance programs, traits that enhance both revenue predictability and valuation.
Employment and Wage Trends
Employment in landscaping services remained relatively flat in July 2025, up just 0.3% from the prior year, but the sector has expanded 23.6% over the past decade—outpacing the 13.0% growth in private employment overall. Wage growth has also been robust. Nonsupervisory employees earned an average of $25.17 per hour in July, a 6.7% increase year-over-year. Over the last ten years, landscaping wages have risen 61.6%, compared to 49.0% for all private-sector roles. Sustained wage growth signals ongoing labor competition, which will continue to pressure margins and highlight the value of operational efficiency in exit planning.
Industry Forecast
Sales for the US landscaping services industry are forecast to grow at a 5.57% compounded annual rate from 2025 to 2029, outpacing the broader economy. This projection underscores a favorable long-term outlook, particularly for businesses with diversified services, efficient routes, and stable customer demand.
M&A Market Outlook
The current M&A landscape for landscaping businesses remains active, with a healthy mix of individual owner-operators, strategic buyers, and platform investors exploring acquisitions. We’re seeing strong appetite for companies generating $1M+ in revenue with recurring maintenance contracts, reliable crews, and well-maintained equipment. Texas-based operators with dense service areas and transferable client relationships are especially attractive. While interest rates have led to more disciplined underwriting, quality deals are still commanding competitive valuations.
Looking ahead, landscaping business owners who can document retention metrics, streamline costs, and maintain steady cash flow will be best positioned for a successful sale. As Q4 approaches, now is the time to review your valuation potential and plan your next move.
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